Share this content

How Do I Absorb a Company With Negative Equity?

I need to close a startup S-corp with negative equity and transfer assets and debt to a new LLC

Didn't find your answer?

Hi, I've Googled till I can't see straight and have not found an answer to this situation:

We have a Florida S-corp that has negative retained earnings due to debt. We would like to close that entity and transfer assets and debt to a new Delaware LLC. Since the Delware LLC is a new "blank'" entity, how do we handle acuiring a company with negative value on the balance sheet? Is it simply offset by good will?  

Thank you! Joe

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.

Share this content